How Your School Uses Your FAFSA
Everyone talks about the importance of the FAFSA and the different financial aid options you could have when you file. These options are provided by the federal government and are need-based, meaning that students who demonstrate more need may be eligible for more aid. So, does this mean that families who demonstrate less financial need should save their time and avoid filing the FAFSA?
NO!
What many students and families don’t know is that even though your FAFSA is only directly involved with federal funding, colleges and universities have many internal financial aid opportunities that require students to have a FAFSA on file. Regardless of how much you qualify for, you could miss out on more financial aid options if your school doesn’t have your FAFSA.
University Scholarships and Grants
Most schools have a page on their website dedicated to scholarships and grants available only to enrolled students. Unlike the FAFSA, not all these opportunities are need based, and each of them will have their own separate requirements.
However, universities will often have opportunities that are need-based just like the FAFSA. Those grants and scholarships will list the FAFSA as an application requirement so that they’re able to determine a student’s level of need. The thing to remember is, these opportunities may have different standards for what a student’s level of need looks like to qualify. That means that even if you didn’t qualify for much on your FAFSA, you could qualify for other need-based scholarships within your university.
Another important fact: some schools even require it to apply for any internal scholarships at all! In these cases, having a FAFSA on file may literally open new doors and windows of opportunity for students.
The Bottom Line
Ultimately, filing your FAFSA could have major advantages for students and families. Many universities use the FAFSA as a tool to help students search for financial aid opportunities, regardless of the amount of federal aid you qualify for. It could open opportunities for other scholarships, but it could also serve as a baseline for your financial aid counselors in helping you navigate your options. And now, with the FAFSA being shorter and easier than ever to complete, it just makes sense for students and families to file every year.
If you want to learn more about the FAFSA, check out our website, or call our Trusted Advisors for more information.
